Miller Industries — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue reached $212.2 million, an 18.8% increase from $178.7 million in Q3 2025.
• Gross profit was $29.8 million, up 17.6% from $25.3 million in the prior year period.
• Gross margin decreased to 14.0% from 14.2% in Q3 2025, a decline of approximately 20 basis points.
• SG&A expenses increased 3.5% to $22.0 million from $21.2 million in Q3 2025.
• Net income surged 97.2% to $6.1 million from $3.1 million in Q3 2025.
• Diluted EPS rose 96.3% to $0.53 per share from $0.27 per share in Q3 2025.
• Nine months ended September 30, 2026, net sales were $633.1 million, a 2.4% increase from $618.4 million in the prior year period.
• Nine months ended September 30, 2026, net income was $13.9 million, a 29.1% decrease from $19.6 million in the prior year period.
• Cash and cash equivalents were $60.4 million as of September 30, 2026, compared to $44.7 million as of December 31, 2025.
• Total liabilities were $181.8 million as of September 30, 2026, compared to $169.1 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company reaffirmed full-year 2026 revenue guidance of $850 million to $900 million.
• Full-year 2026 earnings per share are expected to be generally in line with full-year 2025 results.
• Full-year 2026 gross margins are now expected to be approximately 14%, higher than previously anticipated due to a lower mix of chassis.
• Production volumes are expected to remain steady through the end of 2026.
• Revenue mix in the fourth quarter is expected to return toward historical levels of bodies and chassis.
• Military programs production is scheduled to begin in 2027 and accelerate into 2028 and 2029.

Business Segments and Product Lines:

• The Company introduced the new 65-ton rotator (Century M65) at an event attended by over 1,000 global distributors and customers.
• Heavy-duty capacity expansion at the Ooltewah, TN facility remains on schedule with initial building construction underway.
• The Ooltewah expansion involves a new 200,000+ sq ft facility at a cost of approximately $100 million, funded primarily through operating cash flow.
• The expansion aims to increase output capacity for heavy-duty recovery units, which remain the Company's largest global export.
• Military commitments currently exceed $200 million, with additional global RFQs underway.
• The Omars acquisition delivered solid performance with significant year-over-year growth, reinforcing confidence in meeting first-year accretion expectations.
• Non-cash acquisition-related items regarding Omars had a positive impact of approximately $0.09 per diluted share.

Market and Competitive Landscape:

• Miller Industries is positioned as the global leader in the heavy-duty recovery market.
• The Company maintains production in line with steady order intake despite a dynamic environment.
• There is no reported slowdown in customer demand.
• Distributor inventories have returned to historical levels.
• U.S. production serves as a critical backbone for European demand, supported by the integration of Omars, Jige's heavy-duty integration facility, and enhancements at the Boniface facility.

Risks and Challenges:

• The quarter was impacted by planned holiday downtime and production challenges among chassis suppliers.
• Risks include dependence on outside suppliers for component parts, chassis, and raw materials (aluminum, steel, petroleum-related products).
• Potential impacts from existing and new tariffs, trade wars, and macroeconomic uncertainty.
• Risks related to rising equipment ownership costs, including insurance premiums and elevated interest rates.
• Special risks from sales to governmental entities, including potential adjustments, delays, or cancellations of military commitments.
• International political and economic uncertainties, including military conflicts in the Middle East and Ukraine.
• Risks related to indebtedness and compliance with credit facility covenants.

Management Commentary and Tone:

• CEO William G. Miller II expressed confidence in the underlying strength of demand for products moving into the final quarter of 2026 and into 2027.
• Management highlighted generating cash at an impressive rate, enabling capital returns to shareholders and investment in long-term growth.
• The Company emphasized prioritizing people, products, and the health of its distribution network.
• Management stated the Company is well-positioned to finish the year on a strong note and deliver on the full-year 2026 outlook.

Other Key Points:

• The Board of Directors approved a quarterly cash dividend of $0.21 per share, payable December 14, 2026, to shareholders of record as of December 7, 2026.
• This represents the sixty-fourth consecutive quarter of dividend payments.
• The Company repurchased approximately $2.7 million of stock during the third quarter of 2026.
• Total capital returned to shareholders in the third quarter was $5.1 million in the form of dividends and share repurchases.
• The Company will host a conference call on November 5, 2026, at 10:00 AM ET.